Dennis Schuh

Is it better to be a lender or borrower today? 

I’m a bit biased, but I think it’s a great time to be a lender. We’re seeing very attractive risk-adjusted returns, supported by reset property values, elevated base rates, and a cyclical low in new supply that should drive improving fundamentals for well-located, high-quality real estate.

Has the can been kicked fully down the road when it comes to loan extensions, or is there more leg action to come?

Generally speaking, the can has been kicked about as far down the road as it can go, but there is still some runway left for sponsors who continue to operate and manage their assets effectively.

Which property sector is most attractive from a lending perspective today, and which are you most cautious about? 

Industrial is probably the most attractive sector from a lending perspective, given its strong underlying fundamentals, although senior housing could certainly give it a run for its money. On the other end of the spectrum, we remain most cautious on commodity office, given the well-documented challenges facing the sector.

How are projections for higher-for-longer interest rates impacting your lending strategy today?  

Interest rate expectations have shifted repeatedly, and one thing we know for certain is that the forward curve will not be right. We underwrite and structure loans based not only on prevailing rates, but also stress-test for higher borrowing costs and more challenging refinancing and exit conditions. Given the recent move higher in rates, we are adjusting our underwriting assumptions accordingly, including widening exit cap rates and increasing required debt yields.

What’s your competitive edge in deals today, and who are you competing against most often (banks or non-banks)?  

Our competitive advantage comes down to our team, scale, and information advantage. As for competition, it only takes two lenders to make a market, whether they’re banks or non-banks, so the distinction doesn’t really matter to us.

Do you expect more or fewer loan sales in the year ahead? 

Definitely more since the can has been kicked about as far down the road as it can go. With fewer options to extend, I expect more lenders will turn to loan sales to resolve challenged situations.

Is AI indeed going to kill us all?  

If you believe Anthropic’s S-1 risk factors, we may all be living on borrowed time.

Data centers: As attractive a lending opportunity as they were two years ago?

Potentially even more attractive. The recent negative news cycle could create some compelling lending opportunities, particularly for existing data centers with secured power.

Biggest headwind and tailwind to lending activity in 2027? 

Forward SOFR curve. 

Lightning Round:

If you’d attended Taylor Swift’s wedding, what gift would you have given the happy couple? Sourdough starter kit.

Super Bowl or World Cup? Super Bowl.

Orcas or yachts? I’m more of a land lover, so orcas.

Best vacation you ever took? My next one.

Sun Belt multifamily or Boston life sciences? I’ll take industrial.

Friend, marry, kill — multifamily, data centers, office: Marry multi-
family, befriend data centers, and plead the Fifth on the killing.

Book reader or phone scroller/email checker before bed? New York Post app on my phone.

Fitness activity of choice? Does golf without a cart count?

“Power” song you listen to when mentally preparing for a big event/deal/day? “Even Flow” by Pearl Jam.